Guide to Organizational Structures (PowerPoint PPTX)

The Guide to Organisational Structures outlines the types of organisational structure that could be used in organisation design and their advantages and disadvantages.

It focuses specifically on the matrix structure and critical success factors and alternatives for this structure.

The guide should be used in the high-level design phase of organisation design when potential structures are being considered. The Guide to Organisational Structures will help you to consider and understand the implications of the structures you choose to include in your designs, assisting you to create design options that make sense for the organisation.

This guide is included as an appendix as part of the Organization Design Toolkit.

The Guide to Organizational Structures dives deep into various structural frameworks, including functional and process-based structures. It highlights key features, appropriateness, advantages, and limitations of each structure, providing a comprehensive understanding of their practical applications. The guide also explores matrix structures, detailing functional, geographic, and project matrices, and their role in addressing multiple business dimensions.

Functional structures are ideal for organizations with stable markets and well-understood customer requirements. They drive accountability and control by function, leveraging economies of scale and functional expertise. However, they can become rigid, leading to interdepartmental conflicts and limited communication between divisions.

Process-based structures focus on breaking value chains into distinct processes, promoting efficiency and reducing working capital. They support efficient process development and strong accountability by process. Yet, they may drive competition for resources and misalignment of processes across divisions. This guide is essential for executives seeking to optimize organizational design for operational excellence.